Some oxygenate fuels produced by fermentation, like ethanol, have lower energy density than gasoline and absorb water, a property that prevents such fuels from being distributed with gasoline in existing pipelines. These fuels must be transported separately by rail or trucks to “splash” blending terminals, increasing the cost of blended fuels. Dimethyloctane has higher energy content than ethanol and because it does not absorb water, can be distributed on existing pipelines, avoiding additional transportation costs. Dimethyloctane can be useful as a neat fuel or fuel additive for gasoline, diesel, kerosene and jet fuels. Its relatively low volatility also minimizes environmental impacts.